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The Ministry of Road Transport and Highways (MoRTH) is developing a new rating mechanism to evaluate contractor performance across National Highways projects. A concept note proposes classifying contracts into three value tiers-from INR 100-300 crore, INR 300-1,000 crore, and above INR 1,000 crore-with ratings conducted annually. EPC and HAM projects will be assessed together, while BOT projects will be rated separately due to differing risk structures. Joint venture partners with over 26% stake will share the project's rating, and contractors involved in multiple projects will receive consolidated scores. MoRTH has invited feedback within 21 days, continuing its push for greater transparency, digital oversight and accountability in highway development.
The Ministry of Road Transport and Highways (MoRTH) indicated earlier this week that it is developing a comprehensive rating mechanism to evaluate the performance of contractor firms involved in National Highways development. The ministry explained in a recently issued concept note that the assessment model will classify contracts into three categories: projects valued from INR 100 crore up to INR 300 crore, those exceeding INR 300 crore up to INR 1,000 crore, and projects exceeding INR 1,000 crore. Advertisement
The concept note further outlined that the rating exercise will be conducted annually. In the first cycle, eligible projects completed up to mid-February will be reviewed and preferably rated by the end of the following month. Subsequent cycles will include projects finalised up to mid-November, with ratings expected to be completed by the end of the calendar year. The ministry added in the note that contractors and concessionaires would also be assessed within these defined classes.
As per the framework, ratings for EPC (Engineering, Procurement, and Construction) and HAM (Hybrid Annuity Model) projects will be carried out jointly, while assessments for BOT (Build-Operate-Transfer) projects will be conducted separately due to their distinct risk and revenue structures. The ministry noted that all joint venture partners or stakeholders holding more than a 26% stake in a project will receive the same rating as the project itself. For contractors or concessionaires involved in multiple individually rated projects, normalisation will be applied to determine their consolidated rating.
The ministry has sought comments and suggestions on the proposed framework within 21 days from the issuance of the concept note, continuing its broader efforts to strengthen transparency and accountability in the highways construction sector. MoRTH has previously introduced reforms such as stricter performance monitoring and digital tracking of project progress, making this rating initiative a further step in institutionalising contractor assessment.
Source - PTI
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